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UP TO DATE TAX DATA - FROM MARCH 2008'S BUDGET
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Income
Tax Rates
Starting rate 10% on first* |
2,320 |
2,230 |
Basic rate (20% for savings income) 22% on next* |
36,000 |
32,370 |
Higher rate 40% on income over |
36,000 |
34,600 |
*from 2008/09 only applicable on savings income
where it is below £2,320.00.
Dividends
Basic rate taxpayers |
10% |
10% |
Higher rate taxpayers |
32.5% |
32.5% |
Pre-owned assets tax (£5,000 taxable
threshold)
Discretionary and Relevant Property Trusts*
Basic rate band |
1,000 |
1,000 |
Dividends (rate applicable to trusts - RAT) |
32.5% |
32.5% |
Other income (rate applicable to trusts - RAT) |
40% |
40% |
*from 6/4/2008 A&M trusts can only be created
by a parent's will, all other trusts will fall under the RPT
regime.
Interest In Possession Trusts
Dividends |
10% |
10% |
Savings |
20% |
20% |
Other income |
20% |
22% |
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Income Tax Allowances,
Reliefs and Credits
Given at marginal rate of income tax
Personal allowance (minimum) |
5,435 |
5,225 |
Personal allowance (age 65-74) |
9,030 |
7,550 |
Personal allowance (age 75+) |
9,180 |
7,690 |
Blind Person's Allowance |
1,800 |
1,730 |
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Rent-a-room tax free home income*
*restricted to £2,150 if letting jointly |
4,250 |
4,250 |
Relief restricted to 10%
Married couples/Civil partnerships allowance (age under 75 and
born before 6th April 1935) |
6,535 |
6,285 |
Married couples/Civil partnerships allowance (age 75+) |
6,625 |
6,365 |
Married couples/Civil partnerships allowance (minimum) |
2,540 |
2,440 |
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Age related reliefs abated by £1 for every £2
of income over |
21,800 |
20,900 |
Child Tax Credit (CTC)
Family element |
545 |
545 |
Family element baby addition |
545 |
545 |
Child element |
2,085 |
1,845 |
Disabled child element |
2,540 |
2,440 |
| Severely disabled child element |
1,020 |
980 |
Working Tax Credit (WTC)
Basic element |
1,800 |
1,730 |
Couples & lone parent element |
1,770 |
1,700 |
30 hour element |
735 |
705 |
Disabled worker element |
2,405 |
2,310 |
| Severe disability element |
1,020 |
980 |
| 50+ return to work payment (16-29 hours) |
1,235 |
1,185 |
| 50+ return to work payment (30+ hours) |
1,840 |
1,770 |
Childcare Element of WTC
| Maximum eligible cost for one child |
£175 per week |
£175 per week |
| Maximum eligible cost for two or more children |
£300 per week |
£300 per week |
| Percentage of eligible costs covered |
80% |
80% |
Withdrawal Rates for CTC & WTC
First income threshold |
6,420 |
5,220 |
First income threshold for CTC only |
15,575 |
14,495 |
First withdrawal rate |
39% |
37% |
Second income threshold |
50,000 |
50,000 |
Second withdrawal rate |
6.67% |
6.67% |
Income increase disregarded |
25,000 |
25,000 |
Limits for other relief's
Maximum Investment |
500,000 |
400,000 |
EIS capital gains re-investment |
Unlimited |
Unlimited |
Maximum Investment |
200,000 |
200,000 |
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Charitable Giving
Give as you earn - gross maximum |
No maximum |
No maximum |
Gift Aid - net minimum (no maximum) |
No minimum |
No minimum |
Convenanted donations (minimum 3 year convenant) |
No limit |
No limit |
Note that if you have not paid sufficient tax to cover
the credit claimed by the charitable body, you will be liable to make
good the shortfall of that claim by paying additional tax.
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National Insurance
On first £105.00 (£100.00) |
NIL |
NIL |
£105.01 to £770.00 (£100.01 to £670.00) |
11% |
12.80% |
£770.00+ (£670.00+) |
1% |
12.80% |
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Class 1A |
12.8% NIC on benefits in kind payable on 19th
July after the end of the tax year. |
Class 1B |
12.8% payable on PAYE Settlement Agreement benefits, tax
due 19th October after the end of the tax year. |
Class 2 |
Self emplyed flat rate of £2.30 (£2.20)
per week. |
Class 3 |
Voluntary contributions at a rate of £8.10
(£7.80) per week. |
Profits between £5,435 (£5,225)
and £40,040 (£34,840) per annum |
8% |
8% |
Profits in excess of £40,040 (£34,840)
per annum |
1%
|
1% |
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Car Benefits
Taxable amount based on car's list price when new up to £80,000. Charge varies according to CO2 emissions in grams per kilometre.
120 or less |
10 |
13 |
10 |
10 |
121-139 |
15 |
18 |
12 |
13 |
140-144 |
16 |
19 |
13 |
14 |
145-149 |
17 |
20 |
14 |
15 |
150-154 |
18 |
21 |
15 |
16 |
155-159 |
19 |
22 |
16 |
17 |
160-164 |
20 |
23 |
17 |
18 |
165-169 |
21 |
24 |
18 |
19 |
170-174 |
22 |
25 |
19 |
20 |
175-179 |
23 |
26 |
20 |
21 |
180-184 |
24 |
27 |
21 |
22 |
185-189 |
25 |
28 |
22 |
23 |
190-194 |
26 |
29 |
23 |
24 |
195-199 |
27 |
30 |
24 |
25 |
200-204 |
28 |
31 |
25 |
26 |
205-209 |
29 |
32 |
26 |
27 |
210-214 |
30 |
33 |
27 |
28 |
215-219 |
31 |
34 |
28 |
29 |
220-224 |
32 |
35 |
29 |
30 |
225-229 |
33 |
35 |
30 |
31 |
230-234 |
34 |
35 |
31 |
32 |
235 and over |
35 |
35 |
32 |
33 |
1. The exact CO2 figure is rounded down to the lower
5g/km for cars with emission of 125g/km or more.
2. Euro IV diesel cars registered before 1/1/06 are treated as petrol
cars. Euro IV diesel cars registered from 2006 are treated as other
diesels
Vans |
2008/09 |
2007/08 |
All vans regardless of age |
£3,000 |
£3,000 |
Fuel scale charge |
£500 |
£500 |
From 2007/08 all vans regardless of age will
be taxed through your tax code at a value of £3,000.
Charged on a flat figure of |
£16,900 |
£14,400 |
% charge as per the Co2 emissions
above |
Minimum charge |
£1,690 |
£2,160 |
Maximum charge |
£5,915 |
£5,040 |
Cars and vans |
40p
|
25p |
Motor cycles |
24p |
24p |
Bicycles |
20p |
20p |
There is also an optional 5p allowance
for each passenger carried who is an employee travelling
on business.
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Pensions
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2007/08 (£) |
| Lifetime allowance |
1,650,000 |
1,600,000 |
| Lifetime allowance charge |
55% if cash |
55% if cash |
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25% if income |
25% if income |
| Annual allowance |
235,000 |
225,000 |
| Annual allowance charge |
40% |
40% |
| Maximum relievable personal contribution |
100% of UK earnings |
100% of UK earnings |
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£3,600 if greater |
£3,600 if greater |
| Maximum tax free cash |
25% of pension benefit value |
25% of pension benefit value |
| Individual Savings Accounts (ISAs) |
2008/09 (£) |
2007/08 (£) |
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Mini-ISA |
Maxi-ISA |
| Cash |
£3,600 |
£3,000 |
£3,000 |
| Stocks & Shares |
balance to £7,200 |
£4,000 |
balance to £7,200 |
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Capital Gains Tax
Individuals - flat rate from 06/04/08 |
18% |
10%/20%/40% |
Companies - added to income |
21%/28% |
20%/30% |
Discretionary and Accumulation & Maintenance Trusts |
18% |
40% |
Interest In Possession Trusts |
18% |
40% |
Individuals and most estates |
9,600 |
9,200 |
|
4,800 |
4,600 |
Chattels (5/3 taxable on excess above) |
6,000 |
6,000 |
Individual's indexation allowance (ceases 6th
April 2008) - maximum rate 104.7%
Companies'
indexation allowance continues to be calculated to the month
of disposal.
Taper relief (ceases 6th April 2008)
Percentage of gain that is chargeable based on number of
years and asset is owned after 5th April 1998.
Non-Business Assets
Complete years held/owned:
0 |
100.0% |
1 |
100.0% |
2 |
100.0% |
3 |
95.0% |
4 |
90.0% |
5 |
85.0% |
6 |
80.0% |
7 |
75.0% |
8 |
70.0% |
9 |
65.0% |
10+ |
60.0% |
Business Assets
Complete years held/owned: |
|
0 |
100.0% |
1 |
75.0% |
| 2+ |
25.0% |
| Pre 17th March 1998 assets sold in 2007/08 |
60.0% |
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Inheritance Tax
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NRB |
0% |
0% |
Chargeable lifetime gifts where in excess of the NRB |
20% |
20% |
On death where in excess of the NRB |
40% |
40% |
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Total annual gifts (for each donor)* |
3,000 |
3,000 |
Small gifts (for each donee) |
|
250 |
250 |
Gifts made from surplus income |
Unlimited |
Unlimited |
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Gift by a parent |
5,000 |
5,000 |
Gift by a grandparent |
2,500 |
2,500 |
Gift by any other person |
1,000 |
1,000 |
Gifts made to individuals and certain types of trust
are potentially exempt, provided the donor survives for seven years.
If they die within that period taper relief (below) is available
if the gift is taxable.
0 |
100% |
1 |
100% |
2 |
100% |
3 |
80% |
4 |
60% |
5 |
40% |
6 |
20% |
7 |
0% |
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Corporation Tax
| |
2008/09 |
2007/08 |
Profits exceeding £1,500,000 (standard rate) |
28% |
30% |
Profits under £300,000 (small companies rate) |
21% |
20% |
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Marginal relief fraction |
1/40 |
11/40 |
Effective marginal rate on profits between £300,000 and £1,500,000 |
32.50% |
32.75% |
Note that for close investment holding companies the
30% rate will apply regardless of profit levels. |
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